Bayest Manufacturing Corporation Uses a Predetermined Overhead Rate Based on Direct

question 149

Multiple Choice

Bayest Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 56,000 actual direct labor-hours and incurred $352,000 of actual manufacturing overhead cost. The Corporation had estimated that it would work 60,000 direct labor-hours during the year and incur $330,000 of manufacturing overhead cost. The Corporation's manufacturing overhead cost for the year was:

• A) overapplied by $44,000
• B) underapplied by $44,000
• C) overapplied by $22,000
• D) underapplied by $22,000

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